McMenamins is looking for a group of investors to raise $8 million of the equity in the $26 million redevelopment of the historic Anderson Building in Bothell.
McMenamins itself will put in $1 million and act as managing partner. It’s the first time the company has sought outside equity partners for a redevelopment project.
“This is one of the largest projects we’ve taken on all at once,” said Mike Mcmenamins, founder of Mcmenamins.
The Anderson School redevelopment will have a 73-room hotel, restaurants and bars, on-site brewery, meeting space, a pool and a spa. Mike and his partner, Brian Mcmenamins, drew ideas from the history of the building to incorporate in their newly completed design concepts.
“Preserving the W. A. Anderson Building is important to Bothell residents. It is immensely rewarding to see how enthusiastic the community is about the McMenamins project,” said Bothell City Manager Bob Stowe. “When complete, the Anderson School entertainment complex will animate downtown Bothell, and it is a key part of the amazing transformation occurring now.”
The company established a separate LLC, Anderson School Properties, and is launching an $8 million crowd-funding capital campaign. Opportunities to purchase Anderson School Properties LLC securities under this private placement start at $250,000 for qualified accredited investors — individuals with $1 million or more in net worth or greater than $200,000 in annual income, or qualified banks, partnerships, corporations, nonprofits and trusts. Investors will receive an 8 percent per annum, non-compounded, preferred return on invested capital.
“Bothell is a forward-thinking city, and the Anderson School building has great bones and lots of character. From the moment Brian and I saw it, we knew its potential for Bothell’s revitalization,” Mike said. “It’s one of the best locations we could have imagined — located along two major highways, the Sammamish River and within 30 minutes of Seattle’s fast-growing technology sector — which bodes well for its popularity and future growth. But perhaps more important than financial returns is the positive impact that public gardens, live music, historical spaces, quality jobs and places to gather over a pint can have on a community.”
The funding strategy was made possible when the Securities and Exchange Commission amended Regulation D with Rule 506(c) in September 2013, widening options for private companies to raise capital. With 34 percent of project costs needed to begin construction, and significant related public
and private investment in place, the multi-faceted Anderson School renovation is well-suited to the new investment strategy.
“We think that the community of Bothell will really enjoy our new developments, as it is suitable for any age and most occasions,” Brian said. “We will have free pool access, free meeting rooms. We are doing this because We want Bothell residents to take ownership of it.”
Construction is expected to begin this July or August.
